Real Estate Development Process

This article discusses the personal and professional perspectives on private development, the process of real estate development, structuring the deal and follow through, market research and analysis, and the impact of policy initiatives on development. It provides insights into the stages of development and their significance in the construction of a residential building in Ontario, Toronto.

Real Estate Industry

Section 1: Personal and Professional Perspective on Private Development
On taking on a project of private development, there exists number of perspective sand
considerations which needs to be inculcated in order to provide an accurate and effective
development or output. The personal perspective to the private development should focus on
the returns that the development would provide and the comfort that needs to be achieved
through the development. On the other hand, the professional perspective on the private
development should be such that the development is financially sound and the investment in
the development provides the returns equal to or above it (MUGULKHOD, 2019). These two
contradictory perspectives when balanced effectively then the output that would be received
would actually be productive. The personal perspective of the private development needs to
be considered accurately as this would help in gaining the productivity of the development
and on adding the professional perspective the productivity would be enhanced and
accelerated.
Section 2: Real Estate Development Process
The real estate development involves multi-step process which appears to be a bit
complicating but on understanding each and every step, the complications could be sorted in
simple ways of execution. The process which needs to be followed in the real estate
development are as follows
a. Early Stage- Pre- Development
The primary stage is the early stage or the pre-development stage where the project focuses
on due diligence, permitting and research. This stage carries number of variables and other
considerations which actually adds on to the variability of the stage. The risks associated with
this stage are diverse and investment carries higher risks at this stage (Kohlhepp and
Kohlhepp, 2018). There exist number of steps in the initial stage which includes market
analysis and the feasibility study, land acquisition, assessment of the environment, surveys,
site plans, buildings plans, development plans, permitting, infrastructure improvements, and
finally arrangement of construction financing (Harris, 2018).
b. Middle Stage : Construction
This is the stage which begins with the allocation and sorting out all the issues of the first
stage, this marks the second stage. This stage is accompanied by lower rises as the first stage
as solved number of issues and problems which could have raised in the development of the

real estate (Zhang, 2015). This stage is marked by the construction of the improvements in
the development of the real estate. It involves the following stages vertical construction,
project marketing, drawing on construction financing, pre-leasing, arrangement of permanent
finance, and arrangement of property manager. These steps are the primary consideration of
the development and it needs to be executed accurately as this the vital stage were the actual
construction takes place and thus, it has to be accurate and specific (Stubkjaer, 2017).
c. Final Stage: Operations
The final stage of the private development, is the first stage of the buildings or property’s life
and this is the initial step towards the execution of the property. All the risks and the issues
has been mitigated and accuracy has been achieved in the project which would be followed
by the following steps or activities ongoing marketing and leasing, fixing a buyer,
determination of a holding strategy, ramping up property management, achieving
stabilization. These acts or activities helps in competing the operations of the real estate
property which plays a vital role in the development (Burtonet al. 2016). Though the
development considers the initial stages as the most vital one but it could be stated that all the
three stages are important as the activities involved in each of the stages helps in simplifying
the entire stage and thus, the execution could be done accurately.
Section 3: Structuring the Deal and Follow through (Pre to Closing)
On exploring the stages of private development some important and vital aspects of
development has been acknowledged which could be applied in the construction of a
residential building in Ontario, Toronto. The residential building would be of about 15 floors
each floor having two apartments. The project would be executed through following the
stages of real estate development stages or process as this would help in maintaining the
ethics as well as the authority of the construction. The stages that would be considered in the
construction would be as follows
a. Early Stage- Pre- Development
In the initial stage the permits and the diligence of the project would be achieved by the
higher authorities and thus this would help in planning for the future construction. The stage
would also be accompanied by the analysis of the market that is understanding the market
demand and the need of the customers. The plot or the land of the building would be acquired
through acknowledging the environment around it and the kind of environment that would
attract large number of customers would be opted for (Drummondet al. 2017). The site plans

and the survey on the need of a residential building in the concerned area would be done.
These would help in meeting and finishing the early stage of the development.
b. Middle Stage: Construction
The second stage is the construction stage which would be met through initiating the vertical
construction of the residential building which would help in acknowledging the growth of the
development in future. The marketing and the promotional activities would be done which
would help in gaining the project executors. The pre-leasing would be done and thus, the
second stage or the middle stage would be done appropriately and uniquely (Green,
2016).The manager and the permanent financier would be gained in this stage as this would
help in having a continuous flow of finance in construction and the manager would help in
managing all the activities of the residential building.
c. Final Stage: Operation
The last stage of the development process is the first stage of buildings life that is of the
residential building and this would be accompanied by the activities of ongoing marketing
and leasing. This activity would help in gaining the lease and promote the building. The
buyers would be attracted through marketing and thus, the foremost activity of the last stage
would be effective (Kazaket al. 2017).The ramping up of the property management would
help in the enhancement of working of the building and hence the motive of the construction
of the residential building would be achieved.
These stages would help in achieving the success of the residential building construction in
Ontario, Toronto and it would also reflect the importance of the process to be followed in the
development of the properties.
Section 4: Market Research and Analysis
On analysing the market of Toronto and understanding the residential building demand the
Ontario locality has been explored and this has been done through taking a survey which
aimed at understanding the requirement of the residential building in the locality. The market
research has provided the fact that the concerned area has been gaining some migrants who
are willing to settle in Ontario, which would help in gaining the customers to the residential
building. The market research has aimed at understanding the requirement of the residential
building in the area and it has revealed that the demand for the apartments has been
increasing in the locality due to the changing lifestyle of the people. Ontario being a

developing area and close to the main city, it has been gaining importance in the people’s
mind (Read and Sanderford, 2017). The development of the residential building would also
favour the increasing population of the city and this could also help in gaining the additional
support from other authorities. The market research has been quite favourable for the
development ad is expected to provide some fruitful results which would be assessed through
the number of customers that it would gain.
Section 5: Policy Initiative and Impact to Development
The development of the residential building would consider number of policies and other
laws as this would help in achieving the ethical considerations which would again be in
favour of the building as this would attract the customers. The policy of the building
construction and the laws on the wages would all be considered in the construction. The
consideration of the labour policies would also be adopted as this would help in gaining more
and more labours whichwould accelerate the working of the building. The policies related to
the construction and the residential buildings would be considered along with the laws of
wages which would help in providing the labours with the sufficient amount of pay so that
the productivity is constant or on an increasing trend. The consideration of the policies and
laws are an essential part of the developments this helps in receiving the permits and other
legal authentications at short period of time which accelerates the working of the
development.

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